(Please only answer the first question on my excel sheet. But explain how I would solve and what resources were used to solve the first question) I can't find the components and historical indices of the Dow (DJIA) from the Yahoo Finance website.

Assignment #1 Calculation of Stock Market Index (Dow Jones Industrial Average)

Purpose of the homework:

1. Students will learn the composition of Dow Jones Industrial Average (DJIA)

2. Students can learn how this blue-chip stock index is calculated.

Assignment:

This is an easy warm-up exercise. From the Market Lineup of the Wall Street Journal (Page C2), you can find the Dow 30 components. When you add up the net point change of the day and divide the sum by the Divisor (0.12493117 as of 10/3/2006), you should get the change in the DJIA for that day. Please make sure that you use the current divisor in the calculation.

The assignment asks you to obtain the closing prices for two consecutive days for each stock in the Dow 30. You then calculate the DJIA for each day by adding up the prices of all 30 components and dividing the sum by the Divisor. Next, you calculate the price change for each stock and add up the price changes and divide the sum by the Divisor. The result should be the change in the DJIA for these two days. You also need to collect the actual closing DJIA for these two days and compare with the result of your calculation.

If time allows in class, each student will be assigned a beginning date of the two consecutive days for your exercise. Otherwise, you should choose any two consecutive days. You are advised to use the sample spreadsheet for this assignment.

Information Source:

You can obtain the components and historical indices of the Dow (DJIA) from the Yahoo Finance website. To get the prices of the Dow components, you should go to the summary page of the Dow (DJIA). You can find the Components on the left menu. Once you are on the component page, you can download the prices of all components to a spreadsheet by clicking on the Download button. Remember to do it after the end of market so you can get the closing prices.

"The composition of the 30 stocks may change over time. This spreadsheet is presented only for reference and may not contain the most recent composition. * The divisor may change over time for several reasons. Please use the current divisor. "The composition of the 30 stocks may change over time. This spreadsheet is presented only for reference and may not contain the most recent composition. * The divisor may change over time for several reasons. Please use the current divisor